CAF Framework Established to Transition Legacy Support to Auction-Based Support

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The FCC adopted a Report and Order establishing a Connect America Fund (CAF) Phase II framework to clarify how support for voice and broadband services would transition from legacy mechanisms in price cap areas to auction-based support resulting from Auction 903, which concluded in August 2018.  Among other things, the FCC’s order provides the following:

  • In areas where the price cap carrier was the same as the auction winner, support would be converted to auction-based support.
  • In areas where a carrier besides the price cap carrier was the auction winner, support to the price cap carrier would cease.
  • In Auction 903 areas with no winning bidder, legacy support to the price cap carrier will continue until further notice.
  • In served areas ineligible for Auction 903 support, legacy support will cease when the first CAF Phase II support is authorized nationwide.
  • In areas where a competitive provider is receiving legacy support, such support will be phased down over two years.

Auction 903 long-form applications are still in process with the last of three filing deadlines approaching on February 25, 2019.

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